Learn more about The 79th Group on this review.
This article will review the investment opportunity associated with this group, including the positives and negatives.
If you have been proposed this investment and want a second opinion, you can email me (advice@adamfayed.com) or contact me here.
The 79th Group do not focus on UK-resident investors, so this review should be considered more by people living outside the UK.
Nobody should decide to purchase, or reject, this product based on the information on this review.
Table of Contents
First who are the 79th group?
79th group are a family-owned UK property company that specialise in distressed property assets in the United Kingdom market.
Most of the investments they offer are 1-2 years in length.
Thus far, they have had a 100% track record in repaying investors, having repaid over 10million Pound Sterling.
According to the 79th group, they typically buy into assets that are distressed, meaning that they are buying them at 40%-60% of their “fair” value.
What are some examples of their past projects?
One of their past projects is Millennium Park in Warrington, close to the M62 and M6 motorways. The Gross Development Value (GDV) is over £5 million Pounds.
This is a commercial project involving office buildings.
The picture below from novaloca shows the outside of the project.
One of their residential property projects was The Old Workhouse in Northumberland. They are currently restoring this site.
As per the image from bookings.com below, the site is attracting tourists.
What is the return on investment?
They have different return options. One pays 1% per month (12% per year) on a 1-year basis, with a 7.5% biannual return (15%) being a second option.
On a two year term, clients can get paid 1.25% per year (30% in total over 2 years) or 8.75% every 6 months (35% in total).
This is for the loan note option in the UK.
Do they have other investments?
Yes. This review is primarily focused on the UK loan note investment.
They are also expanding, so have private equity and other options such as the DMCC in Dubai, and in natural minerals.
They have many interesting projects in Guinea linked to gold mines.
What are the positives associated with this investment?
The main positives are:
- The founders have a long-term track record in the market.
- As they specialise in distressed property, a recession could help their business model, as more people want to offload assets quickly
- Investors do have a first charge against the asset. Therefore, in the event of default, investors have first charge over the assets
- This investment can be reinvested every 1-2 years, which does mean that it isn’t a big commitment
- They have a security trustee.
- You can invest in up to 26 currencies, which is more than most providers accept. With most comparable options, USD, Euros and Pounds are the only options.
- Low minimums from 10,000-25,000 GBP, depending on the type of investment the investor wants to make
- Over 90% of their investors have reinvested.
- There are no additional fees to pay on this investment. All costs are baked into the return.
What are the negatives
- You could lose 100% of your money invested if things go wrong. This is not an investment for low-risk investors.
- The model only works due to the good ROI which is scored against distressed assets. If those distressed assets are harder to acquire in the future, the whole model might not work.
- Like any loan note structure into private companies, you don’t have as much transparency as investing through a loan note.
- With interest rates higher than before, and planning permission taking longer, risks for all property-related investments like this have arguably increased in the last few years.
- With corporate AAA bonds providing higher returns in 2024, you always have to question how much risk you want to take relative to the return.
Conclusions
All alternative investments like this carry substantial risks.
If you are looking for a second opinion you can contact me.
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I would like to know if something happed to the 79 groups ,will there assets covers my investment ,and how long will it take to short thing out.At the moment is it save to invest with them (£300000)
Thanks for your comment. I will reach out to you soon.
The trustee, 79th group use to protect the investor now have gone into administration. What happens to my investment? The 79th group haven’t given any announcement that the Trustee itself is busted. Does that mean the company is preparing to go into liquidation? My Investment is over 200K
I will email you
What exactly the current condition of 79th. They have some problem with the trustee?
I will email you.
I too would like to know about the trustee. I am about to invest in them
THE TRUSTEE, 79TH GROUP USE TO PROTECT THE INVESTOR NOW HAVE GONE INTO ADMINISTRATION. WHAT HAPPENS TO MY INVESTMENT? THE 79TH GROUP HAVEN’T GIVEN ANY ANNOUNCEMENT THAT THE TRUSTEE ITSELF IS BUSTED. DOES THAT MEAN THE COMPANY IS PREPARING TO GO INTO LIQUIDATION?
I will email you Thomas.
Is it safe to invest in this company. Have been burnt before…Reading about comments about liquidation..is that true?
I will email you.
Considering investing in 79th Group, concerned that there are no public answers to the questions posed?
How do you mean? You mean about the trustee?
They have changed their trustee as an FYI.
As long as the new Trustee is in place and current investors transferred- does it matter that Castle have gone into administration ?
That should be the case yes. I also emailed you.
79 groups is a name, but surrounded by many enterprises,each project have its own leader but if something happen to one of them and if you have invested in one of them are you protected by 79 groups.
The natural resources and property investments should be separate.
Hi,
Planning to invest 25000 pounds in 79th CM3 series B.
saw some negative comments about the trustee.
Your advise please
I have some funds, i would like to invest around $200,000. What is needed to invest and what are the documents. Clive
Reading the comments, is there any issue with the trustee or the company itself? is there a signal to read related to liquiddation?
They changed the trustee. As mentioned though, a trustee doesn’t make the investment more safe in all cases.
Thinking about a 25 K GBP investment with 79th Group CM3. Trying to do DD as I have been stung before, Castle Trustee gone bust, this is a red flag to me but not necessarily a deal breaker. What do you honestly say in your expert opinion Fayed ?
Jim